CAPEX need after maxing out SBA 7a

by a searcher from Harvard University - Harvard Business School

10 months ago

Hello all,

I was wondering if anyone has experience financing fairly significant CAPEX (~2M) shortly after closing a deal that uses all avialable 5M in SBA 7a lending.  Usually I see term sheets that don't allow for additional loans but perhaps asset based lending is possible?  Maybe it's possible to structure a pari passu position that acts almost like a revolver?  Curious if there are any creative ways to accomplish this presuming there is  a compelling story to justify the additional investment.  Thanks!

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searcher from Harvard University - Harvard Business School

Thanks, Brad! I'll follow up.

10 months ago | like reply | 0 likes

lender from Eastern Illinois University

I agree with Lisa that it is best to include it up front. But there are some ways to finance CAPEX post closing so long as the cash flow is there to support it. Happy to talk about alternative funding at --@----.com Good luck.

10 months ago | like reply | 0 likes

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